1How much tax deduction do I get on an electric vehicle loan?
Up to Rs 1,50,000 a year on the interest, under Section 80EEB , in the old regime. Only the interest qualifies, and the deduction continues over the loan's life if the loan is eligible.
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ArticleIf you bought an electric vehicle on a loan, Section 80EEB offers a deduction on the interest — but the timing of your loan sanction is what decides whether you qualify. Here's how the EV-loan deduction works.
Reviewed by CA Harika Chebolu, FCA · Last updated 2026-06-13
Quick answer
Interest on a qualifying electric-vehicle loan is deductible up to Rs 1,50,000 under 80EEB — but only for loans sanctioned in the eligible window. Here's how it works.
Section 80EEB allows a deduction of up to Rs 1,50,000 a year on interest paid on a loan to buy an electric vehicle. Only the interest qualifies, and it's an old-regime deduction. For a financed EV this is a meaningful extra deduction over and above your other limits.
The benefit applies to loans sanctioned by a financial institution between 1 April 2019 and 31 March 2023. If your EV loan was sanctioned in that window, you can continue claiming the interest deduction over the loan's life; loans sanctioned after it don't qualify. Confirm your sanction date first.
To qualify, the loan must be from a bank or specified non-banking financial company — not an informal loan. Keep the lender's interest certificate as proof for your return.
If you also use the vehicle for business and claim the interest as a business expense, you can't claim the same interest again under 80EEB. Decide which route gives the better benefit and claim it once.
Because 80EEB is an old-regime deduction, count it alongside your 80C, NPS, HRA and home-loan interest when comparing regimes. For a borrower with a qualifying EV loan, it adds to the case for the old regime.
Up to Rs 1,50,000 a year on the interest, under Section 80EEB , in the old regime. Only the interest qualifies, and the deduction continues over the loan's life if the loan is eligible.
No — only loans sanctioned between 1 April 2019 and 31 March 2023 by a bank or specified NBFC. Loans sanctioned outside that window don't qualify, so check your sanction date.
No — you can't claim the same interest twice. If the vehicle is used for business, decide whether the business-expense route or 80EEB gives the better benefit and claim it once.
Financed an electric vehicle? Write to the firm and we'll check your eligibility and claim the 80EEB interest correctly.